Ottawa, March 19 -- The Bank of Canada kept its target for the overnight rate unchanged at 2.25%, as policymakers weighed the economic fallout from geopolitical tensions, volatile energy prices and softening domestic data.

Before the outbreak of the conflict, the global economy had been on track to grow at around 3%, broadly in line with earlier projections.

However, surging oil and natural gas prices since the escalation have raised near-term inflation risks worldwide while also tightening financial conditions.

The Bank noted that global bond yields have risen, equity markets have declined and credit spreads have widened, reflecting increased investor caution.

While consumer and government spending remained resilient, housing activit...